a. The laws of supply and demand have shaped the way I think about every day life so much. Expanding my knowledge of those, especially to areas I had not thought to before has greatly improved my understanding of the world, and will continue to do so. The urban planning and economic geography sections did that as well. My improved understanding of the way that countries and cities are laid out will be applicable many times throughout my life. Also, the DIE model has been extremely helpful for me in my understandings. Not immediately jumping to evaluation will greatly help me while in different places or even at home. Another great model was the one that showed the interactions between theories, experiences, and expectations. Thinking through the lens of that idea will be very helpful while abroad and later in life.
b. A huge thing I want to look into more is economic geography. The whole concept of market distributions and studying how those change with transportation costs and social factors seemed really interesting. Seeing how well the model applied to certain places (like Iowa) made me really want to try complicating and expanding on it so that it can be applied to more complex areas such as New York or California.
c. Questions about what I am going to find the most challenging are always difficult to answer, because I have learned that I have no idea when it comes to predicting things like this. I guess I can always speculate though. One interesting thing about LSE is that English students are actually a rather small minority. It is a very international school. This means that there will be lot of cultures represented, and finding ways to interact with several different cultures together may be challenging. Living in a different culture is already difficult, and adding in several other cultures may complicate things.
Wednesday, June 4, 2014
Monday, May 19, 2014
City Analysis Assignment
1. London is the UK's only national metropolis. With a population over 7 million people it is seven times as large as the next largest city, the regional metropolis of Birmingham. Oxford and Canterbury are decently close, large cities that probably became successful because of their proximity to London. London is the 23rd largest city in the world, directly behind New York City by only 100,000 people, and the third largest in all of Europe behind only Istanbul and Moscow.
2. The key features that London adds, that would not be available in a smaller city, are a national government, several international museums, the Bank of England, one of the most vibrant banking industries, and several historical landmarks. Being a national metropolis there are not any cities of higher order than London. It is difficult to find things that London is missing, but is in other cities. It is missing a professional american football team, but that is probably more of a cultural issue than one of size.
2. The key features that London adds, that would not be available in a smaller city, are a national government, several international museums, the Bank of England, one of the most vibrant banking industries, and several historical landmarks. Being a national metropolis there are not any cities of higher order than London. It is difficult to find things that London is missing, but is in other cities. It is missing a professional american football team, but that is probably more of a cultural issue than one of size.
UK News Summary 3: Rise in Car Prices
1. According to the European Automobile Manufacturer's Association (ACEA), demand for cars is on the rise in the European Union. Sales of new cars rose by 4.6%, with the higher concentration of more sales at less high-end car companies (such as Ford and Fiat rather than Mercedes-Benz and Audi). Specifically in Britain car sales rose by 8.2%.
http://www.bbc.com/news/business-27442441
2. Economically, this is very good sign for the economic recovery currently in progress. This increase in sales and demand points to people having a better outlook for the future in these countries. Economic conditions are improving somewhat and people are responding by purchasing more items, such as cars. While this is good news, we should not get overexcited because, as Theo Leggett points out, sales are still well below pre-recession levels.
3. The reason that car sales were so low in the first place has a lot to do with the recession caused by the financial crises. The current increase in sales has a lot to do with government subsidies and incentive programs similar to "cash for clunkers" in the U.S. a few years back. This does seem to be the right policy at this moment in time, however policy makers might need to look to the future and be careful that they do not overdue this type of stimulus and cause inflation.
http://www.bbc.com/news/business-27442441
2. Economically, this is very good sign for the economic recovery currently in progress. This increase in sales and demand points to people having a better outlook for the future in these countries. Economic conditions are improving somewhat and people are responding by purchasing more items, such as cars. While this is good news, we should not get overexcited because, as Theo Leggett points out, sales are still well below pre-recession levels.
3. The reason that car sales were so low in the first place has a lot to do with the recession caused by the financial crises. The current increase in sales has a lot to do with government subsidies and incentive programs similar to "cash for clunkers" in the U.S. a few years back. This does seem to be the right policy at this moment in time, however policy makers might need to look to the future and be careful that they do not overdue this type of stimulus and cause inflation.
Monday, May 12, 2014
Adam Minter Reading Response
a. The reason China receives the majority of U.S. scrap is simply the shipping costs. It costs significantly less to ship scrap to China and so even if the price for scrap was better in India, which it rarely is, it is unlikely to be a better deal to ship to India. But why is it cheaper to ship to China? The huge trade imbalance between the U.S. and China causes there to be a significant amount of ships in the U.S. waiting for a backhaul. Scrap is an effective filler, as there is a high demand in China, for the boats that would have gone back empty.
b. "'They're probably migrants from Punjab,' he tells me, then says a couple of words to them in a language I don't understand, and they nod. 'They send money home. It's better than farming. I'm sure they're illiterate.'"
This quote illustrates the displacement of workers from their families in order to make money. The opportunities abroad are better, and as a result they can make more money for them and their families. Unfortunately, this also means they have to live away from their families.
c. Jared Diamond talked a lot about the impacts of geography on which countries were successful and, to some extent, this is still true. The types of geography that lead to success are now different. It is closeness and ease of transportation to countries with a demand for products a country produces and from countries a country has demand for products from that determines whether or not a country is involved internationally, and as a result more likely to be successful in those specific market. The comparison between India and China in the market for scrap metal illustrates this. A factor unrelated to the scrap metal market, the trade imbalance with the U.S. caused by China's more developed industrial sector and ports, leads to China dominating over India despite Jamnagar having a huge demand for scrap.
b. "'They're probably migrants from Punjab,' he tells me, then says a couple of words to them in a language I don't understand, and they nod. 'They send money home. It's better than farming. I'm sure they're illiterate.'"
This quote illustrates the displacement of workers from their families in order to make money. The opportunities abroad are better, and as a result they can make more money for them and their families. Unfortunately, this also means they have to live away from their families.
c. Jared Diamond talked a lot about the impacts of geography on which countries were successful and, to some extent, this is still true. The types of geography that lead to success are now different. It is closeness and ease of transportation to countries with a demand for products a country produces and from countries a country has demand for products from that determines whether or not a country is involved internationally, and as a result more likely to be successful in those specific market. The comparison between India and China in the market for scrap metal illustrates this. A factor unrelated to the scrap metal market, the trade imbalance with the U.S. caused by China's more developed industrial sector and ports, leads to China dominating over India despite Jamnagar having a huge demand for scrap.
Wednesday, May 7, 2014
Marc Levinson Reading Response
a. "Shipping costs no longer offered shelter to high-cost producers whose great advantage was physical proximity to their customers; even with customs duties and time delays, factories in Malaysia could deliver blouses to Macy's in Herald Square more cheaply than could blouse manufacturers in the nearby lofts of New York's garment district." This section really stuck out to me because of the way it related to our class discussions on economic geography. The shipping costs were so decreased that it increased the range of just about everywhere. It also mentioned later in the section that it was not just the cost per mile, but also the cost of transferring the containers to the next section of shipping, such as trucks or trains. These reduced transition costs lead to even greater range for international shippers.
b. He believes that the shipping container is a huge factor contributing to globalization. The container has lowered transportation costs so much that it has had a significant effect on making the law of one price become a reality. It has made costs for many items much more similar around the globe, including that of labor. Obviously there are still extreme differences in parts of the world, but significantly less so than before the shipping container era.
c. Going back to my first point, consumers were helped by the greater competition and supply of goods created by lower shipping costs. The greater competition reduced prices and allowed more people to participate in markets they otherwise could not have. Unfortunately, the same people, this time in the form of job seekers, were hurt by losing bargaining power in the labor market. Although the net effect is clearly positive on the world, the loss of bargaining power by workers in the labor market is certainly an interesting loss.
b. He believes that the shipping container is a huge factor contributing to globalization. The container has lowered transportation costs so much that it has had a significant effect on making the law of one price become a reality. It has made costs for many items much more similar around the globe, including that of labor. Obviously there are still extreme differences in parts of the world, but significantly less so than before the shipping container era.
c. Going back to my first point, consumers were helped by the greater competition and supply of goods created by lower shipping costs. The greater competition reduced prices and allowed more people to participate in markets they otherwise could not have. Unfortunately, the same people, this time in the form of job seekers, were hurt by losing bargaining power in the labor market. Although the net effect is clearly positive on the world, the loss of bargaining power by workers in the labor market is certainly an interesting loss.
Monday, May 5, 2014
UK News Summary 2: Financial Fair Play Against Manchester City
1.
The first ever Financial Fair Play (FFP)
sanctions against football clubs are set to be imposed by Uefa. One of the
teams being investigated and negotiated with is Manchester City, one of the
more popular teams in the Barclay’s Premier League. The FFP rules are designed
so that a team can only pay what they make. These rules were instituted to make
sure teams were only spending what they earn while paying their taxes and debts
on time. The issue is that within the
rules there appears to be a lot of grey area, and the teams are allowed to
haggle over their punishment. Manchester City is now haggling over their
punishment and whether or not it should even receive one. http://www.bbc.com/news/business-27219134
2.
These FFP rules are another example of a league
limiting player salaries in the name of more equal competition. Teams with
higher revenues can afford to go a bit into debt in order to sign a better
team, then, after becoming more competitive, revenues will catch up and they
can pay off their debts. The question is, does this actually increase the competitiveness
of play or is the main function to reduce player salaries.
3.
From the reading it suggests that team owners
trying to limit salaries is the cause of this problem. A solution could be to
take the control of policies away from the owners and give them to a third
party governing body that has the goal of promoting equal competition.
Friday, May 2, 2014
UK Profile Part Five: Transportation
1. a. The busiest port in the UK is the Felixstowe port. It is the 7th most active port in Europe and 32nd in the world. This port facilitated the travel of over 3 million TEU's (Twenty-foot Equivalent Units) in 2011.
b. The United Kingdom Manor Ports Group Limited (UKMPG) operate 41 ports in the country accounting for about 70% of the tonnage handled in the UK.
2. a. Almost all of the railroad freight in the UK was carried out in Great Britain (comprising of England, Scotland, and Wales). In 2011/12 rail freight transported over 101.7 million tonnes worth around £30 billion.
b. Again the majority of railways are in Great Britain, with relatively little in Northern Ireland. The British railway system is the oldest in the world. Also, it is still the 18th largest railway network in the world despite the UK only being the 80th largest country in the world.
c. The UK road network totals 247,523 miles and is very extensive. This carries over 90% of all motorized passenger travel and 65% of all domestic freight.
3. a. London Heathrow Airport is the busiest international airport in the world. There are several other international airports available such as Gatwick Airport and Manchester Airport.
b. In total the UK has 471 airports and airfields. As a group the London airports are the busiest, single city set of airports in the world.
b. The United Kingdom Manor Ports Group Limited (UKMPG) operate 41 ports in the country accounting for about 70% of the tonnage handled in the UK.
2. a. Almost all of the railroad freight in the UK was carried out in Great Britain (comprising of England, Scotland, and Wales). In 2011/12 rail freight transported over 101.7 million tonnes worth around £30 billion.
b. Again the majority of railways are in Great Britain, with relatively little in Northern Ireland. The British railway system is the oldest in the world. Also, it is still the 18th largest railway network in the world despite the UK only being the 80th largest country in the world.
c. The UK road network totals 247,523 miles and is very extensive. This carries over 90% of all motorized passenger travel and 65% of all domestic freight.
3. a. London Heathrow Airport is the busiest international airport in the world. There are several other international airports available such as Gatwick Airport and Manchester Airport.
b. In total the UK has 471 airports and airfields. As a group the London airports are the busiest, single city set of airports in the world.
Subscribe to:
Posts (Atom)